Ag markets once again mixed Friday morning

CBOT corn futures continue reacting to differing old and new crop prospects. That is, the persistent tightness of the old crop situation supported the nearby contracts overnight, whereas fresh talk of benign growing weather over the Corn Belt during the days ahead weighed upon their deferred counterparts. July corn futures rose 3.75 cents to $6.4725/bushel in early Friday electronic trading, while December dipped 1.0 cent to $5.3425.

Overnight talk also concentrated upon the likely benefits of improved weather over the central U.S. during the second half of June. In addition, global soy markets apparently sustained the breakdown suffered by the American market Thursday. However, soybeans and products moved higher in early Friday morning trading. That may partially reflect concurrent palm oil gains, but the lack of news behind the upward push suggests it is largely technical in nature. July soybean futures bounced 9.5 cents to $15.1975/bushel as the sun rose over Chicago this morning, while July soyoil climbed 0.33 cents to 48.17 cents/pound, and July soybean meal moved up $3.0 to $455.6/ton.

Wheat futures suffered across the board losses Thursday night. With the passing of the old crop year on May 31, the wheat industry is now essentially involved solely with new crop prospects. As pointed out previously, those are regarded as being generally bearish, since limited U.S. production will apparently be greatly supplemented by a large global crop. July CBOT wheat futures declined 4.25 cents to $6.8125/bushel early Friday morning, while July KCBT wheat slid 4.25 cents to $7.1425, and July MGE futures skidded 1.0 cent to $8.11.

Choice beef cutout fell again Thursday night, thereby giving CME cattle traders little reason to think the recent cash market decline will not continue when country trading for this week occurs at some point today. Thus, live cattle and feeder futures maintained their ongoing decline overnight. August cattle slumped 0.20 cents to 118.87 cents/pound early Friday morning, while December lost 0.30 cents to 125.12. August feeder cattle futures tumbled 0.55 cents to 144.92 cents/pound, and November sagged 0.42 cents to 150.80.

The expiring June hog contract continued its closing surge Thursday and again overnight, but the deferred contracts are clearly encountering resistance around their recent highs. Ultimately, the idea that seasonal forces will militate against persistent strength beyond Independence Day is probably weighing upon those contracts. July hog futures declined 0.07 cents to 98.57 cents/pound in early Friday morning trading, while December edged 0.02 cents lower to 81.57.